International Journal of Economics, Commerce and Management

United Kingdom ISSN 2348 0386 Vol. 11, Issue 5, May 2023

https://ijecm.co.uk/

ANALYZING THE IMPACT OF CUSTOMS ON

IMPROVEMENT OF THE LOGISTICS PERFORMANCE
INDEX: RESEARCH ON ASEAN MEMBER COUNTRIES

Le Thi Minh Hoa

University of Transport Technology (Utt), Vietnam
leminhhoa.hanu@gmail.com

Nguyen Thi Thanh Tam

Faculty of Engineering - University of Transport Technology (Utt), Vietnam
tamntt@utt.edu.vn

Abstract
The article analyses the impact of customs on improving the National Logistics Performance
Index (LPI) across 10 ASEAN countries. To ensure that one of the issues of particular concern
of governments, international financial institutions and investors is how to improve the national
logistics capacity. Research to discover six essential activities of customs: (i) ASEAN Single
Window (ASW), National Single Window (NSW); (ii) Administrative procedure reform in the field
of customs; (iii) Specialized management; (iv) Risk management and compliance management;
(v) Development of customs brokers; (vi) Customs - enterprises have a positive impact on the
two criteria of customs clearance and logistics service quality in improving LPI. The article uses
a quantitative approach using SPSS 20 software to test Cronbach's alpha coefficient, EFA
factor analysis and linear regression between customs clearance criteria, logistics service
quality and index. LPI number The study used data set on the international LPI index of 10
ASEAN countries (World Bank overall announced six times in 2007, 2010, 2012, 2014, 2016,
2018). The data consists of 56 observations. Based on selected research objectives and
methods, the study found a positive relationship between the two criteria of customs clearance
and the quality of logistics services with the LPI index. The study analyzed and pointed out that
the critical activities of the customs authorities positively impact the two criteria of customs

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clearance and the quality of logistics services to improve the national logistics capacity of 10
member countries. The article has proposed six standard solutions for ASEAN member
countries to improve the national competitiveness index in logistics.
Keywords: Logistics performance index; customs broker; customs; ASEAN single window

INTRODUCTION
The Association of Southeast Asian Nations (ASEAN) is a regional association
established based on the Bangkok Declaration of August 8, 1967, with the participation of five
founding countries (Indonesia, Malaysia, the Philippines, Singapore and Indonesia). Thailand).
After 43 years of existence and development, ASEAN has 10 member countries (5 more
countries are Brunei Darussalam, Laos, Myanmar, Cambodia and Vietnam). ASEAN has
become an intergovernmental regional cooperation organization with significant political-
economic influence in the Asia-Pacific, a partner of substantial countries and critical economic
centres. Economic and political issues worldwide (ASEAN Information and Communication
Steering Committee, 2017).
In 2018, ASEAN achieved important economic targets, such as a consumer market with
a population of 649.1 million; the average income per capita reached 4,601.3 USD/person/year;
is the fifth largest economy in the world with a gross domestic product (GDP) of US$30.0 billion,
a real GDP growth rate of 5.2% (2018) and an average of 5.3% (in the period). 2000-2018);
import-export turnover reached 2,816.0 billion USD; trade balance surplus reached 48.0 billion
USD; Total FDI investment capital reached 154.7 billion USD, of which intra-regional FDI
reached 24.5 billion USD, foreign FDI investment was 130.2 billion USD with some leading
partners in total FDI value such as:: EU ($14.2 billion), Japan ($13.7 billion), China ($6.6 billion).
The economic structure of ASEAN also has a positive change in the direction of industry and
service development. The financial system is grouped by: agriculture, manufacturing and
services, which has developed in the order of reducing the proportion of agriculture and
manufacturing industry, increasing the service sector, with the ratio of 10.3%: 36.6%: 50.1%
(2018) (ASEAN Secretariat, 2019).
ASEAN has adopted the policy of developing logistics services as one of 12 priority
areas to accelerate the integration and internal linkage (ASEAN Secretariat, 2008) and
reaffirmed in the Protocol to implement the package of commitments. AFAS 9 services in the
ASEAN Framework Agreement on Services (ASEAN Secretariat, 2015). Gibson (2017) also
points out the importance of logistics by estimating that logistics costs account for about 8% of
GDP (for countries with the most developed and efficient logistics industry, such as the United

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States and the Netherlands), 13% of GDP ( for OECD countries), between 16-18% (China) and
about 18-22% (for ASEAN countries), and about 25% of GDP (for countries with inefficient
logistics systems).
Member countries are well aware of the challenges of market opening, development
opportunities and the importance of improving the LPI, so they have continuously taken many
actions and policies to improve scores and rankings. On LPI in 2007-2018 (the average LPI
score of countries increased from 2.9 to 3.02). In the coming period, the goal of continuing to
improve the LPI is the focus of each ASEAN member state. For Vietnam, the government sets a
plan: “By 2025, ranked by the national logistics capacity index (LPI) will reach 50th or higher;
the contribution of logistics service industry to GDP reaches 8%-10%, service growth rate
reaches 15%-20%, outsourcing rate of logistics services reaches 50%-60%, logistics costs
decrease equivalent to 16%-20% of GDP” (Prime Minister, 2017, 2).
Customs is an agency of the Government with the function of State management in the
field of import and export, performing special functions such as performing customs inspection
and supervision for imported and exported goods, means of transport on exit, entry or in transit;
anti-smuggling and illegal transportation of goods across borders, collecting taxes related to
import and export goods, professional management of customs clearance agents. Customs has
made a direct and vital contribution to improving the LPI index by affecting two groups of
criteria: customs clearance and quality of logistics services. However, to realize the goal of
increasing LPI's scores and rankings soon, customs authorities of member countries need
specific and practical solutions, thereby improving the business environment—and national
competitiveness.

RESEARCH OVERVIEW
The World Bank (2007) published the LPI (Logistics Performance Index) index in 2007.
The LPI index is translated into Vietnamese with several names, such as the logistics efficiency
index (Ministry of Industry and Trade, 2019). , the logistics performance index (Nguyen Tuong,
2018), or the national logistics capacity index (Prime Minister, 2017). However, the LPI's essence
is the same to provide simple comparative indicators of supply chain efficiency linked to logistics.
The World Bank (2018) stated that the LPI index had been used by policymakers, trade experts,
and researchers in assessing and comparing logistics developments. Thereby, LPI allows
governments, businesses and stakeholders to assess the competitive advantage created by
logistics activities and take measures to improve logistics - the lifeblood of the global economy.
For overall assessment, World Bank provides an LPI index, including international and
domestic LPI. Logistics is broadly understood as a network of services supporting the

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movement of goods, cross-border and domestic trade. In the framework of the research
focusing on the international LPI index with 6 component criteria rated on a 5-point scale by the
respondents: 1 point (shallow), 2 points (low), 3 points ( average), 4 points (high) and 5 points
(very high). The six criteria given include:
Firstly, the efficiency criterion of Customs Clearance (C: Customs): The effectiveness of the
border control agencies, such as the speed of customs clearance of exported and imported
goods; simplicity of customs procedures and predictability of customs clearance procedures
(openness, transparency, stability of customs procedure regulations).
Second, the Infrastructure criterion (IN: Infrastructure): The infrastructure quality related to
commerce and transport (infrastructure for seaports, airports, railways, roads, seaways, and
cargoes). Air, transportation, warehousing, information technology infrastructure and IT services).
Third, logistics service quality criteria (LS: Service quantity): The capacity and quality of logistics
service providers, such as enterprises providing road, rail, and air transport services. Air, sea
and multimodal transport; warehousing and distribution enterprises; forwarding agent; customs
clearance agent; trade and transport-related associations; consignee and consignee.
Fourth, the criterion of Delivery (Sh: International shipment): The ease of arranging
transportation of import and export goods at competitive prices, related to costs such as agency
fees, port fees, and bridge fees. Roads, storage fees;
Fifth, the criterion of Tracking (TR: Tracking and tracing): The ability to track and trace
shipments;
Sixth, the criterion of Delivery Time (Tm: Timeness): The punctuality of the shipments are
transported when they arrive at the destination compared to the scheduled time; Import and
export shipments are cleared through customs and delivered on time.
Thus, the study modelled the formula for calculating the international LPI (dependent
variable) according to 6 component criteria (6 independent variables). The assumed
independent variables have a linear relationship with the dependent variable (LPI) through the
correlation coefficient (αi), which is regressed and tested on a sample basis. The regression
model has the form:
LPI = F(Xi) = α0+ α1X1+ α2X2+ α3X3+ α4X4+ α5X5+ α6X6+ 0
Expect the values of αi to be non-zero and more significant than zero (αi>0) and
statistically significant when performing the regression. This shows the essence of how.
Calculate the LPI index based on 6 component criteria. When improving the criteria, the
effect of improving the LPI index will correspond to the correlation coefficient obtained from the
regression model.

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The study also proposes adding a dummy variable, a group of countries (Group) in
ASEAN. Divide 10 countries into two groups based on the average score of LPI over six years,
economic development, and countries' participation in ASEAN. Then, Group is a dummy variable
with values 0 and 1. When Group=1 (applies to 6 countries: Singapore, Thailand, Malaysia,
Indonesia, Vietnam, and the Philippines; Group = 0 (applies to 4 countries, including Myanmar),
Lao, Cambodia, and Brunei. The study will test the difference in scores of LPI between two groups
of countries and what is the formula for calculating LPI of each Group of countries?
The proposed linear regression model has the form:
LPI = α0+ α1 C+ α2IN+ α3LS+ α4Sh+ α5TR+α6Tm+ α7Group + 0 (1)
The study also proposes adding a dummy variable, a group of countries (Group) in
ASEAN. Divide 10 countries into two groups based on the average score of LPI over 6 years,
economic development, and countries' participation in ASEAN. Then, Group is a dummy
variable with values 0 and 1. When Group=1 (applies to 6 countries: Singapore, Thailand,
Malaysia, Indonesia, Vietnam, and the Philippines; Group = 0 (applies to 4 countries, including
Myanmar), Lao, Cambodia, and Brunei The study will test the difference in scores of LPI
between two groups of countries and what is the formula for calculating LPI of each Group of
countries?
The proposed linear regression model has the form:
LPI = α0+ α1 C+ α2IN+ α3LS+ α4Sh+ α5TR+ α6Tm+ α7Group + 0 (1)
Regarding the impact of customs authorities on customs clearance criteria and quality of
logistics services, several agreements and studies have been mentioned, such as WTO (2017)
recommendations to create favourable conditions for international trade and minimize costs for
import and export activities, the customs authority should apply modern measures such as
administrative reform and application of information technology. Information and publicize
procedures online (articles 7.2, 7.9); apply the form of goods release when there is no decision on
customs clearance (Article 7.7); NSW National Single Window (article 7.10); Apply risk
management (clause 7.12); Apply post-clearance inspection (article 7.13); Apply the AEO priority
enterprise mechanism (Article 7.14) and develop customs clearance agents (Article 7.20).
ASEAN has agreed on a Protocol for creating favourable conditions for international
trade-in simplification, harmonization and standardization in trade, process, customs clearance
and lines related information to expect for transaction fees lower, enhance export competition
and integration of ASEAN in a single market best in goods, services and investments and
product platforms export unification (ASEAN Secretariat, 2008; ASEAN Secretariat, 2015).
Intel Jr (2015) shows the current state of action Customs modernization has taken place
in most countries ASEAN members such as Customs clearance documents, express shipment,

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certificate of origin, payment of customs duties authorities, licenses, certificates of absolute

safety and hygiene Products; inspection and release of goods over 50%; other operations such
as post-through inspection system customs, a tax refund is improved to less than 50%. Muscle
The ASEAN Single Window (ASW) is seen as a tool to improve the administrative way in
ASEAN, customs procedures in border in order to improve the time required to clear the border
customs, import/export and transparent procedures customs at the border (Basu Das, 2017).
Tongzon & Cheong (2013) indicates delay implementation of the single national window
(NSW) plan, ASEAN Single Window in some member countries has causing delays in the
implementation of the delivery plan Translating electronic documents. Research suggests that
the Inefficient customs clearance is one of the causes The main reason why the logistics
industry continues to be poor competitive in most ASEAN member states, it leads to the decline
of regional integration.
The Ministry of Industry and Trade (2019) analyzed the need to improve Vietnam's LPI
as customs reform because this criterion has the lowest score in the consideration criteria. The
study also proposes solutions to improve customs as a critical measure based on controlling the
actual inspection time for import and export goods, the time for checking documents, and the
channelling rate. Red and yellow channels for customs dossiers, control customs clearance
agents, improve the efficiency of the single national window, and reform specialized
management at the border. Thus, it is possible to identify the system of impact mechanisms of
customs on improving the LPI of the country. ASEAN region according to the research
framework (Figure 1).

CUSTOM
- ASEAN Single Window (ASW), one
national door (NSW). Criteria
- Administrative reform in the field of Clearance
the customs area in LPI ;
- Specialized examination.
- Risk management and compliance Ability stat
management country about
customs. Quality criteria logistics (LPI)
- Development of agents for customs amount of
clearance service
Mandarin. logistics in
- Customs partners - Enterprises. LPI

Figure 1: A research framework

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RESEARCH METHODS
Research used quantitative approach. The facility uses SPSS 20 software to verify the
system Cronbach's alpha number, EFA factor analysis and regression linearity between
customs clearance criteria, quality logistics services and the LPI index. Research use
Qualitative method for root cause analysis and propose some solutions based on model results
Linear regression models and practical proofs in the activities of customs authorities. Research
using data set on national LPI the economy of 10 ASEAN countries (World Bank announced the
total maybe six times in the year: 2007, 2010, 2012, 2014, 2016, 2018). The data consists of 56
observations (Brunei has only 2 observed in 2016, 2018); data on delivery criteria cross-border
trade in the Doing Index. The business was announced by World Bank in 2020, and data Report
of the ASEAN Secretariat.

RESULTS AND DISCUSSION

Descriptive statistics of variables in the regression model
The overall score of the ASEAN LPI index reached an average of 3.0/out of 5.
Meanwhile, the average value of the clearance criteria (C) and infrastructure criteria (IN)
reached level 2.8/out of 5, the lowest among the six criteria. The quality of logistics services
reached an average of 2.9/out of 5, the third lowest out of 6 considered criteria. The most
significant value of the LPI index (4.19) and the six criteria is the case of Singapore (Table 1).

Table 1: Descriptive Statistics

Unit: point on 5. scale
Variable Number of Average Standard Minimum Maximum
Mean
observations value Deviation value value
LPI 56 3,00 2,98 0,55 1,86 4,19
C 56 2,80 2,68 0,56 1,85 4,18
IN 56 2,80 2,66 0,67 1,69 4,28
SH 56 3,01 3,04 0,51 1,73 4,04
LS 56 2,93 2,89 0,57 2,00 4,22
TR 56 3,02 3,10 0,59 1,57 4,25
TM 56 3,41 3,45 0,52 2,08 4,53

The results of Cronbach's Alpha analysis and EFA factor analysis

The results of Cronbach's Alpha analysis of 6 components of the LPI index reached
0.985. This value is more significant than 0.7, ensures the scale's reliability for six criteria, and
represents the degree of association of 6 observed variables (measures) forming the LPI index.

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Factor loading factor KMO (Kaiser-Meyer-Olkin) reached 0.922>0.75 and sig value. 0.00 < 5%.
This represents six closely related criteria in factor formation.
The results of Table 2 show that six observed variables form 1 composite factor FT1.
The Eigenvalues=5.6>1 and Variance=93.478% represent the factor developed from 6 criteria
that explain 93.478% of the variation of the combined factor.
Model analysis results in the matrix of component scores of the composite factor FT1 as
follows:
FT1 = 0,172 C+0,175 IN+ 0,170 Sh+ 0,175 LS+ 0,174TR+0,168 Tm (2)

Results of model regression and hypothesis testing

The linear regression model is based on the proposed theoretical model (1). The
dependent variable LPI represents the scores of experts on the LPI index of member
countries/scale 5. The independent variables included in the model include: factor FT1 is a
composite factor of 6 criteria. Components that form the LPI; The Group dummy variable takes
the value 0, and the value 1 corresponds to the division into two groups of countries.
The sample linear regression model is LPI = β0+ β 1FT1+ β 2 Group. In which the
expected value of βi > 0 is statistically significant.

Table 2: Total Variance Explained

Extraction Sums of Squared Rotation Sums of Squared
Component

Initial Eigenvalues Loadings Loadings

% of Cumulative % of Cumulative % of Cumulative

Total Variance % Total Variance % Total Variance %
1 5.609 93,478 93,478 5.609 93,478 93,478 5.609 93,478 93,478
2 .269 21.145 43.856
3 .920 15.340 59.197
4 .880 14.659 73.856
5 .849 14.150 88.006
6 .720 11.994 100.000

According to Table 3, the model has no self-variance phenomenon (Durbin-Watson

value = 2,364 relative value 2), and the independent variables participating in the model explain
100% of the variation of the LPI dependent variable (value of LPI = 2,364). Adjusted R-squared
value = 100%).

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Table 3: Model Summaryb

Model Change Statistics
2
Std. Error of R F Sig. F Durbin-
2 2
R R Adjusted R the Estimate Change Change df1 df2 Change Watson
1 .715 .511 .458 .632 .511 9.768 11 103 .000 2,364
a. Predictors: (Constant), FT1, Group b. Dependent Variable: LPI

The obtained model is suitable because of Sig. =0.00 < 5% reject hypothesis H0:
correlation coefficients between variables the independent and dependent variable is 0 (Table
4). Like So, is there a coefficient βi other than 0, or is there a relationship a linear relationship
between the LPI variable and the independent variables of model.
The obtained model is suitable because of Sig. = 0.00 <5% rejects hypothesis H0: the
correlation coefficients between the independent and dependent variables are zero (Table 4).
Thus, there exists a coefficient βi other than 0, or there is a linear relationship between the LPI
variable and the model's independent variables.

Table 4: Indicators ANOVA

Model Sum of Squares Df Mean Square F Sig.
b
Regression 16,562 2 8,281 204326,237 ,000
1 Residual ,002 53 ,000
Total 16,564 55
a. Dependent Variable: LPI b. Predictors: (Constant), FT1, Group

The regression model concluded that there is no multicollinearity phenomenon (VIF

values are all < 10) and Sig value. The independent variables included in the model are
statistically significant (Table 5). The regression model has the form:
LPI = 0.032+0.99FT1+ 0.003 Group +εi (3)

Table 5: Coefficients
Non-normalization Normalization Linear multi-plus
Model T Sig.
coefficient coefficient statistics
B Std. Error Beta Tolerance VIF
***
(Constant) ,032 ,006 5,38 ,000
*
1 Group ,005 ,003 ,005 1,92 ,060 ,44 2,25
***
FT1 ,990 ,002 ,997 424,03 ,000 ,44 2,25
a. Dependent Variable: LPI
***
Corresponding to the Sig. value less than 1%; * corresponds to the Sig. value from 5% to 10%

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With α2=0.03, it means that the LPI score between group 1 and group 2 has a difference
of 0.03 points assuming other factors are the same. α1 = 0.99, which means that when FT1
changes by 1 unit point, the LPI score will be improved by 0.99 points/scale of 5, assuming
other factors remain unchanged. Combined with the component score matrix equation (1), the
observed variable Customs clearance (C) and the quality of Logistics service (LS) have a
positive impact on FT1 with coefficients 0.172 and 0.175, respectively.
Performed a test to see if there is a difference in the LPI index value between Group 1
and Group 2. Hypothesis pair test: H0: no difference and hypothesis H1: there is a difference in
LPI scores. Through the Sig value. =0.031<5% should reject hypothesis H0; there is a
difference in the value of LPI scores of two groups of countries in ASEAN.

Challenges for customs in improving ASEAN's LPI

Nguyen et al. (2014) pointed out that customs clearance is a barrier to trade facilitation.
International trade is favourable for logistics in the countries of ASEAN members. Meanwhile,
studies and Reports from the latest 2017 surveys of 246 European companies found 67% pay
worries about the burden of customs formalities in ASEAN hindering the development of supply
chains in the region. 2015 survey of 5,545 Japanese companies operating in ASEAN. As a
result, customs clearance procedures are simplified and recognized as the AEC's most
demanding trade facilitation measures. American companies about 50% of the 451 companies
from ASEAN were asked to reduce delivery costs translate more, and have high expectations
for the show ASEAN trade facilitation and maritime development quan (Basu Das, 2017).
Statistics describing the overall mean score of the LPI index, Customs clearance criteria
and translation quality logistics services (Table 6) show: Firstly, the score index, the overall
average of the three indexes, is lower than 3 points/ scale 5 (average scale level) represents the
score. The LPI of the ASEAN region is only the average of the world; Second, two criteria for
customs clearance and logistics service quality are two out of three criteria has the lowest
average score of the six structural criteria for the region's LPI; Third, two states on the uneven
ground among member states ASEAN.

Table 6: Average scores of LPI index and C and LS criteria of 10 ASEAN countries
Unit: point on 5. scale
TT Country LPI C LS
1 Brunei Darussalam 2,79 2,70 2,64
2 Cambodia 2,59 2,40 2,49
3 Indonesia 2,99 2,65 2,92

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4 Laos PDR 2,40 2,26 2,33 Table 6…

5 Malaysia 3,44 3,20 3,38
6 Myanmar 2,26 2,13 2,19
7 Philippines 2,94 2,68 2,86
8 Singapore 4,09 4,02 4,09
9 Thailand 3,31 3,08 3,21
10 Vietnam 3,04 2,79 2,96
Average 2,99 2,79 2,90
Source: Report on the LPI index of the World Bank in 6 publications (2007 to 2018).

On the other hand, the time and cost of customs clearance relative to imports and
exports in the index. The national business environment (DB) is still less competitive paintings,
in which detailed analysis: (i) Time and cost cross-border trade fees between countries in the
region are still at the highest level in the world, and I disagree (there is a big difference between
the three countries Singapore, Thailand and Malaysia with the rest). (ii) Time and financial fees
for customs clearance at higher borders than preparing customs clearance documents. (iii) Time
and economic costs for imported goods exports are higher than for exports.

Solutions to enhance customs reform aimed at improving the national logistics capacity
index for ASEAN member countries
First, effectively implement the ASEAN (ASW) and National Single Window (NSW) OSS
mechanisms. The essence of ASW is to carry out electronic customs based on the application
of information technology, the internet and modern management methods to establish the
system Unified electronic customs clearance system among members ASEAN members,
enhancing connectivity and information sharing electronics related to intra-regional trade
transactions and between ASEAN and partner countries, reform and reduce the time and
financial costs of customs clearance for the cross-border transactions based on electronic
approval automatic (Steering Committee on ASEAN Single Window) (2017). However, although
ASW has the central commitment treatment, delayed implementation caused by NSW
implementation in countries faces many obstacles. However, many countries need help to
connect Ministries electronically, and many companies still make customs declarations in paper
form (Tongzon and Cheong, 2013).
Essential solutions to be implemented in the ASEAN region, such as Internalization and
document system legislation and implementation master plan on ASW and NSW consistent with
the committed Protocol; There is a need for technical assistance on ASW and NSW from WCO,

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Customs Asian; There is periodic monitoring and evaluation and the support and sanctioning
plans of the Commission ASEAN Customs-Related Technical Committee for with member
countries that are slow to implement

Table 7: Statistics on cross-border trade of 10 ASEAN countries in 2019

Cross-border trade
Export Export Export Export Import Import Import Import
Economy time: time: Cost: Cost: time: time: Cost: Cost:
Prepare Comply Comply Comply Prepare Comply Comply Comply
documents with border Prepare with border documents with border Prepare with border
(hours) crossing documents crossing (hours) crossing documents crossing
procedures (USD) procedures procedures (USD procedures
(hours) (USD) (hours) (USD)
Brunei
Darussalam 155 117 90 340 132 48 50 395
Cambodia 132 48 100 375 132 8 120 240
Indonesia 61 53 139 254 106 99 164 383
Lao PDR 60 9 235 140 60 11 115 224
Malaysia 10 28 35 213 7 36 60 213
Myanmarr 144 142 140 432 48 230 210 457
Philippines 36 42 53 456 96 120 50 580
Singapore 2 10 37 335 3 33 40 220
Thailand 11 44 97 223 4 50 43 233
Vietnam 50 55 139 290 76 56 183 373
Source: World Bank (2020)

Second, strengthen the application of information technology information and reform

administrative procedures in the field of Customs Mandarin. Solutions are essential in the
progress simplification, harmonization, publicity, and transparency of customs procedures
combined with modernization customs in electronic customs declaration, self-monitoring
operation at seaports and airports, which Reduces the time and financial costs of preparing
customs documents in Mandarin; Customs clearance and release of goods at the border gate
border. Critical solutions include reviewing regulations system of customs administrative
procedures on the customs authority level to cut down on formalities, paper permission to
conform to international standards; middle and high plan long-term investment in information
technology infrastructure Modern information for declaration, customs clearance, and customs

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supervision is essential, such as upgrading the server system, capacity data transmission line,
data storage system; generation Customs management software system, data mining about
goods, value, code, export tax..; system software to connect with commercial banks and State
Treasury through the one-stop portal country (NSW) in payment of taxes, fees, charges or tax
refund; significantly upgrade the security system; Adequate information against hackers and
criminals data theft.
Third, implement effective specialized management for import and export goods.
Solution Focused on: Building a technical test model to unify the structure of the customs
authority to Currently checking at border gates, ministries and agencies post-inspection and
application of management methods compliance, risk management in determining control
shipments investigation; connect ministries and sectors in NSW to implement licensing,
electronic certification serving information mandarin; Reviewing and perfecting the legal
document system laws relating to specialized examinations.
Fourth, strengthen the effective use of risk management methods, compliance
management in auditing, Customs supervision and control of goods import and export, means
of transport on exit and entry scene, and transit. Modern management methods are
recommended in the 1999 Kyoto Convention as amended by the World Customs Organization
and the United Nations Trade Facilitation Agreement (TFA, 2017) and the ASEAN Customs
Agreement signed in 1997 and effective in 2012 (chapter 2) to encourage member countries.
Apply method law; customs can mobilize limited resources to focus on necessary inspection,
supervision and control of the entry point for yellow and red channel shipments, raising the rate
of green channel declaration for automatic customs clearance and applying additional measures
such as releasing the goods and customs guarantee. Besides assessing the level of compliance
of import and export enterprises, a basis Customs Department develops a priority business
system (AEO), enhancing the owner's voluntary compliance row. The recommended core
solution: reviewing regulations system of legal documents providing for the application methods
of risk management, compliance management; volume integrated risk management software
system, compliance management enter the automatic electronic customs clearance system on
the engine Department of risk analysis and customs clearance; build Build an accurate and
timely data system for the import and export business.
Fifth, develop a system of agents for procedures Professional and regional customs
ASEAN. Producing customs clearance agents to help improve legal compliance, reduce the risk
of import and export shipments and reduce illegality laws, handle administrative violations,
reduce the inspection rate fact and check records, and increase the rate of exemption from
inspection at the border. Some key solutions Export: Review and complete legal documents on

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the mechanism activities and responsibilities of the parties related to the agent carrying out
customs procedures according to international and regional standards; strengthen the
government's management of this type encourages, support development, type abandon
informal services that are personal and self- broadcast; develop types of AEO businesses for
with the dealer and have a lot of agency technical support customs for customs clearance
agents in operation.
Sixth, developing a customs-business partnership in customs clearance of goods. This is
important content. It is essential to build connections and mutual support between Hai
authorities and import-export enterprises to improve High compliance with customs laws.
Problem solution export target: strengthen propaganda about regulation Laws and interests
related to maritime partners' official enterprise; increase the number of businesses AEO,
especially in customs clearance agents Customs and freight forwarding and transportation
enterprises provide customs declaration services.

CONCLUSION
In the context of regional economic integration and the world, gender is shared, creating
favourable conditions for Trade and investment is inevitable for the region ASEAN region and
most countries. To ensure that one of the topics of particular interest to governments,
organizations, international financial institutions, and leading investors is How to improve national
capacity in logistics? Based on the research objectives and methods selected, the study found a
co-relation variable between two criteria of customs clearance and quality logistics service volume
with the LPI index. The study analyzed and specified the critical activities of Customs authorities
have a positive impact on two criteria, Customs clearance and service quality logistics aims to
improve the national logistics capacity of 10 countries ASEAN member states, including (i) Single
Window ASEAN (ASW), National Single Window (NSW); (ii) Improves administrative way in the
field of customs; (iii) Administration specialized management; (iv) Risk management and
compliance management prime minister; (v) Development of customs clearance agents;
(Because) Customs partners - enterprises. Research also proposed six groups of standard
solutions for ASEAN member countries. However, due to a wide range of research, the in-depth
analysis of with limited LPI of each country.

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